Kenya has taken the lead in start-up investments across Africa in the first half of 2024, despite a downturn in overall venture funding on the continent. According to data from Africa: The Big Deal, Kenyan start-ups secured $244 million (Ksh. 31 billion), capturing a significant 32% share of the total $780 million raised by African start-ups, excluding exits.
This performance highlights Kenya’s pivotal role alongside Nigeria, Egypt, and South Africa—the continent’s ‘Big Four’ nations—which together received 79% of the total funding. There has been a noticeable decline in funding compared to previous years, with a 31% drop from the second half of 2023 and a sharp 57% decrease from the first half of 2023, marking the quietest semester since late 2020.
Key players benefiting from Kenya’s vibrant start-up environment include M-Kopa, known for its solar lighting systems and financial services, which secured a $51 million loan from the United States International Development Finance Corporation (DFC). Spiro, an e-mobility start-up with operations in Kenya, also received a $50 million loan from the African Export-Import Bank (Afreximbank).
In terms of sectors, transport and logistics attracted the most funding, followed by fintech and energy-related start-ups. However, the report underscores ongoing disparities, with most funding flowing to ventures led by male CEOs and lacking female founders.
The slowdown in funding is attributed to economic uncertainties such as inflation and fluctuating currency values, which have prompted international investors to exercise caution and redirect capital away from emerging markets.
Kenya’s leadership in 2024 reaffirms its status as a key player in Africa’s start-up landscape, navigating challenges while continuing to attract significant investment.
Photo source: Google
By: Montel Kamau
Serrari Financial Analyst
10th July, 2024
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